In United States v. Rivera, --- F.4th ---, No. 24-673 (9th Cir. 2026), the Court affirmed Marcello Rivera’s jury conviction and 25-year sentence for possessing methamphetamine and possessing ammunition as a felon.
A jury convicted Marcello Rivera of possessing methamphetamine and possessing ammunition as a felon. The district court sentenced Rivera to 300 months’ imprisonment. He appeals, arguing that his conviction and sentence were invalid because of sentencing error, trial error, and constitutional error. Because Rivera’s convictions and sentence are free of error, we affirm.First, Rivera argues that the district court abused its discretion by converting the cash into a monetarily equivalent amount of drugs. We allow currency found in a search to be “convert[ed] . . . into drugs for sentencing purposes.” United States v. Otis, 127 F.3d 829, 836 (9th Cir. 1997); see Guidelines § 2D1.1. A sentencing court may do so “where the amount of a drug seized does not reflect the scale of the offense” at issue. United States v. GonzalezSanchez, 953 F.2d 1184, 1186 (9th Cir. 1992). But when a sentencing court converts currency in this way, there must be “evidence connecting the money to drug-related activities.” Otis, 127 F.3d at 836. In other words, the district court must find by a preponderance of the evidence that the money had a nexus to a drug transaction. See GonzalezSanchez, 953 F.2d at 1187.That requirement is met here. In its special verdict, the jury found that the “approximately $5,972 in U.S. currency” was “property constituting or derived from proceeds obtained, directly or indirectly, as a result of the offense charged in Count 1 of the indictment and bill of particulars.”1 And Count 1 was possession with intent to distribute methamphetamine. In other words, the jury found that every dollar of the $5,972 seized constituted methamphetamine proceeds, and the district court reasonably relied on that finding during sentencing.The district court did not err by applying the premises enhancement to Rivera’s total offense level.At the time of sentencing, both parties agreed that no Ninth Circuit precedent squarely spoke to the applicability of this enhancement in Rivera’s case. Instead, the district court adopted the rationale of Johnson to find that the enhancement applied.Johnson correctly interpreted the scope of Guideline § 2D1.1(b)(12) considering the provision’s plain text. And we have since adopted the rule laid out by the Sixth Circuit and several other circuits. See United States v. Tekola, 176 F.4th 608, 612 (9th Cir. 2026). Under Tekola, the reasoning in Johnson applies to Rivera’s direct appeal. See United States v. Engstrom, 166 F.4th 835, 848 (9th Cir. 2026) (generally courts “apply changes in precedent in cases on direct appeal.”).Under Tekola, the district court did not abuse its discretion by applying the drug premises enhancement to Rivera’s sentence. See Gasca-Ruiz, 852 F.3d at 1170. Rivera used his home to store and distribute methamphetamine. Rivera kept many tools of his drug trade at his home, including packaging materials for dividing methamphetamine for his customers, scales for weighing methamphetamine, and a loaded magazine ready to insert into a handgun. And evidence from Rivera’s cell phone shows that he used his home to conduct methamphetamine deals as far back as February 2021.The district court did not err in its handling of Agent Nehring’s percipient and expert testimony. Agent Nehring testified on each of the four days that the jury heard witness testimony. The district court instructed the jury that Agent Nehring was engaged in dual-role testimony, using the Ninth Circuit’s model instruction, both before his expert testimony started and at the end of the case. And the district court separated Agent Nehring’s testimony into lay and expert phases, with several other witnesses testifying between to ensure that the jury did not get confused between percipient and expert testimony.The district court did not err by admitting exhibits 82 and 83 into evidence at trial. The district court did not abuse its discretion in finding that the exhibits were evidence of intent permissible under Rule 404(b)(2). We have held similar testimony—when used to prove intent to distribute drugs—permissible under Rule 404(b). See, e.g., United States v. Hegwood, 977 F.2d 492, 496 (9th Cir. 1992). The district court’s decision was well within its discretion.The district court did not err in excluding the recorded conversation Rivera had with Agent Nehring shortly after his arrest. During trial, Agent Nehring testified that Rivera made an unrecorded inculpatory statement toward the end of his search, in which Rivera admitted that he should not have possessed the ammunition because he was a felon. Rivera argues that he should have been allowed to introduce a recorded statement from his post-arrest interview—despite it being hearsay—to impeach Agent Nehring.If Agent Nehring hypothetically said on the stand, “I saw X,” then Rivera could introduce any prior inconsistent statements Agent Nehring made where he told others, “I never saw X.” What Rivera cannot do is introduce statements that he made to Nehring that, if true, might undermine what Agent Nehring previously heard. The latter scenario is hearsay not admissible under any exception because Rivera is offering his statement for the truth of the matter it asserts, rather than offering a prior inconsistent statement that Agent Nehring made. Rivera’s hearsay is not valid impeachment evidence.Rivera also arguably attempted to introduce the recording for purposes of impeachment by contradiction. Fed. R. Evid. 607. Under this theory, Rivera’s recorded statements denying responsibility for firearms dealing would be introduced not for the truth of the matter asserted, but to contradict Agent Nehring’s claim that Rivera admitted guilt while not being recorded. At any rate, the district court did not abuse its discretion in concluding that Rivera’s recorded statements denying responsibility for firearms dealing were irrelevant to statements he made in a different conversation concerning ammunition found in Rivera’s home.Finally, Rivera argues that his conviction for possession of ammunition under 18 U.S.C. § 922(g)(1) must be reversed because the statute is facially unconstitutional to the extent that it prohibits possession of ammunition alone by a person convicted of a crime punishable by more than one year. But Rivera did not preserve this claim.